Prerequisites & Document PreparationGathering KYC documents and preparing DSC for all proposed directors and members
Done
Establish your Section 8 company effortlessly to drive your social impact goals forward.
A Section 8 Company is a type of organization you can set up to run your business. As such they need to be registered with the Ministry of Corporate Affairs (MCA) and are subject to relevant Rules and Regulations
Section 8 companies are Not-for-Profit organisations incorporated under the Companies Act, 2013. They do not operate with a prime business motive, and hence are different from the other class of companies. A Section 8 Company is registered as an NPO to promote arts, commerce, charity, education, environment, science, social welfare, sports, research, religion and similar objects — and must apply its profits, if any, only toward promoting those objects.
Other limited companies exist to run a business and can distribute profits. A Section 8 Company must use income only for its charitable objects — dividends are not allowed.
A Section 8 Company is similar to a Trust or Society, except it is registered under the Central Government's Ministry of Corporate Affairs. Trusts and Societies are registered under State Government regulations.
Compared to a trust or society, a Section 8 Company offers improved members' reach, better legal standing, credibility and transparency of donations — while enjoying the privileges and obligations of limited companies.
Not every non-profit idea needs a Section 8 Company on day one. Use this section to check whether the structure matches your objects and governance appetite — then talk to our incorporation team before you file.
Groups formed to advance charity or public benefit work who want a Central Government–registered structure rather than a private trust deed.
Schools, research bodies or training institutions that want a formal company structure focused on education, not profit distribution.
Organisations working on social welfare or financial assistance to lower income groups under Section 8 objects.
Groups promoting environmental protection, art or culture that need MCA-level credibility for donors and grants.
Associations set up to promote sports and related activities on a not-for-profit basis.
Not-for-profit microfinance operators that need a company structure with no minimum share capital requirement.
Our incorporation team reviews your objects, governance plan and donor strategy before filing, so you choose Section 8 for the right reasons — and file it cleanly with the Regional Director and ROC.
Gathering KYC documents and preparing DSC for all proposed directors and members.
Filing name approval and applying for Section 8 license from the Regional Director, MCA via Form INC-12.
Drafting and filing the Memorandum and Articles of Association along with SPICe+ forms on the MCA portal.
Receiving CIN from ROC and proceeding with PAN, TAN, bank account, and tax exemption registrations.
Section 8 company advantages are not limited to giving internal satisfaction of helping people. From a financial standpoint, there are advantages that make going through the section 8 company registration process a strategic move:
As you can see, the benefits of setting up a section 8 company are many. But especially, it can make your charity organization more credible.
Section 8 Company Registration Eligibility Criteria — who can form one, and the rules that keep it a not-for-profit company under the Companies Act, 2013.
An Individual or HUF or limited Company is eligible to start a Section- 8 company registration in India.
Two or more person who will act as a shareholder or Director of the company should fulfill all the requirements and compliances of the Section 8 Company registration.
At least one of the directors shall be a resident of India. However, a firm may be a member of the company registered under this section.
The objective should be the promotion of sports, social welfare, the advancement of science and art, education and financial assistance to lower income groups.
The surplus generated must be used for meeting the principal objective of the section 8 company only.
Founders, members, and directors of the company cannot draw any remuneration in any form of cash or kind.
No profit should be distributed among the members and director of the company directly or indirectly.
The company should have the clear vision and project plan for the next three years.
You need to have the following set of documents for Section 8 Company registration:
Getting the Certificate of Incorporation is the starting line — not the finish. The first weeks after registration set up your banking, tax exemption and compliance rhythm so the company can actually operate.
Turn the licensed non-profit into a working organisation with the basics banks and donors expect.
Being a Section 8 Company does not automatically exempt you from tax — separate registrations are needed.
Companies Act, 2013 record-keeping applies to Section 8 companies just like any other company.
Know what repeats every year so returns do not become last-minute fire drills.
After incorporation you need books, ROC filings and payroll if you hire — not a one-time form submission. TargoLegal works as an organisation with dedicated teams, so support does not depend on one individual CA or CS being available.
Books of account, reconciliations and GST returns once turnover crosses the threshold — so your first months leave a clean trail for donors and annual filings.
Explore accounting support Targo SecretaryBoard hygiene, event-based ROC filings, annual returns and statutory registers — handled as an ongoing practice, not a one-off visit.
Explore secretary support Targo HRWhen your NGO hires staff, payroll runs, PF, ESI and TDS need the same discipline as company law — our HR desk covers that layer.
Explore payroll & HR Targo 360Accounts, compliance and HR under one coordinated engagement — useful when you want a single accountable team instead of three separate vendors.
Explore Targo 360Compliance is a habit: clean records, timely board meetings, and filings that match what the company actually does. Here is a practical way to keep a Section 8 Company under control.
Section 8 companies still carry company-law and tax work. Exact items depend on grants, donations, employees and activities.
Actual requirements depend on legal structure, turnover, funding sources, employee count and applicable laws. Non-profit status does not remove filing discipline.
Operational issues after licence and incorporation — explained calmly.
What goes wrong: Activities drift from licensed objects.
Why: Projects expand without a governance check.
Prevent: Align programmes with MoA objects before launch.
What goes wrong: Utilisation reports and audits become difficult.
Why: Project spends are not tagged in the books.
Prevent: Maintain project-wise ledgers from the first grant.
What goes wrong: Late fees and avoidable notices.
Why: Teams focus on programmes and underrate company filings.
Prevent: Keep a shared annual compliance calendar with reminders.
What goes wrong: Filing delays when directors change.
Why: DIN/KYC and board records are not updated.
Prevent: Reconfirm director and registered-office records annually.
What goes wrong: Filings stall when only one consultant holds credentials.
Why: Access was never mapped to the board / authorised person.
Prevent: Keep controlled access to MCA, GST and income-tax systems.
What goes wrong: Last-minute rushes before AGM or return dates.
Why: No forward view of statutory work.
Prevent: Ask for a year-ahead compliance map at the start of each FY.
Section 8 companies can change their CA or compliance provider without re-incorporating.
Licence, CIN and prior filings remain valid. Migration is about documents, access and pending compliance.
Licence and incorporation are the start. Setup, programmes, filings and governance continue.
Obtain Section 8 licence and incorporate the company.
Registration processBank account, books, registers and early filings.
After incorporationProgrammes, grants, contracts and day-to-day accounting.
Accounts & operationsROC, tax and recurring statutory work.
Compliance overviewDirectors, address, objects-related filings.
Change supportNew programmes, registrations and governance upgrades.
Talk to usYou're viewing Section 8 Company — compare it with LLP, OPC, Sole Proprietorship and more, side by side or with a 60-second guided quiz.
Yes, section 8 company registration is costly then trust or society registration.
The cost of Section 8 Company registration varies from company to company.
The following are required for a Section 8 Company to claim tax exemption:
No, there is no concept of the minimum number of member requirement for section 8 company registration.
As per the Companies (Incorporation) Rules, 2014, only a company with limited liabilities can be registered under the Act.
The Central government authorizes the Registrars of Companies of the respective jurisdictions to issue the license for a Section 8 company.
No. Section 8 accommodates both companies limited by shares or by guarantee, i.e with or without share capital.
Yes. The Companies Act, 2013 does not prohibit a Trust or Co-operative Society from becoming a member of a Section 8 company.
In Section 8 Company, the auditor is appointed within 30 days of Section 8 company registration by the board of Director and no Central Government approval is required.
Yes, we have to take the permission or approval for section 8 company registration in India from the central government. CG approval is applied before section 8 company registration.
The Companies Act, 2013 does not define the term 'persons'. Hence the definition can be inferred from Section 2 (41) of the General Clauses Act, 1897 which mentions that the term 'persons' may include individuals or associations of individuals and Companies.
Following are the purposes of Section 8 Company Registration in India:
Following are the disadvantages under section 8 company registration:
The contributions made to Section 8 companies from overseas or non-resident Indians must bear compliance with the norms laid out under the Foreign Contribution and Regulation Act, 2010. The contributions can therefore be received in accordance with the Companies Act, 2013 in addition to the Foreign Contribution and Regulation Act, 2010.
An application for a section 8 company registration can be made by any person or an association of persons, provided:
Section 8 Company is often called as Non-Profit Organization Company. A non-profit organization is often known as NGO. An NGO can register under Trust Act or under Section 8 companies act, 2013 (earlier Section 25 of Companies Act 1956). The NGO registration can be done for promoting art, science, commerce, Technology, sports, education, social research, social welfare, religion, charity and protection of environment etc.
The annual compliances of section 8 company are just like the other companies:
An application has to be made using Form INC-12 to the Registrar of Companies (RoC). The following documents are to be attached alongside the application:
As per the Companies Act, 2013, a foreign company is a body corporate that is established outside India and operates its business in India, either directly or through an agent, physically or via electronic mode, and conducts its course of business in India. A corporate company incorporated outside India to carry not-for-profit activities cannot fall under the ambit of a foreign company, as there is no business activity being carried out. Therefore, the respective company cannot be termed as a foreign company. However, within the norms of FEMA (Foreign Exchange Management Act, 1999) regulations, the company can institute branch offices.
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